Theoretically, yes, but there will be a lot of overhead for Z-sorting objects as well as performing a multi-stage render like that. I am only guessing, I certainly have never tried, but I bet it comes out to a wash, at best. It'd be better to keep the rendering pipeline simple, if that were the case. Large-scale worlds will have LOD for models and terrain at distance, which will help with the rendering complexity of far objects.

You can also pre-process it and apply super-far details as a skybox image. A 2- or 3-block radius of real, 3D city buildings with a cityscape skybox looks pretty good. A forest scene can use object instancing to really clutter up the medium field and leave even a generic landscape skybox for great results.